Which of the following correctly describes Interest payable?
A)Interest payable is shown on the balance sheet as a non-current liability.
B)Interest payable is shown on the balance sheet as a current liability.
C)Interest payable is shown on the income statement as an operating expense.
D)Interest payable is shown on the balance sheet as a current asset.

Question

Quizplus · Accepted Answer

Interest payable is a current liability as it is the amount of interest owed but not yet paid by the company as of the balance sheet date. It is typically included under the "Accounts Payable" section of current liabilities on the balance sheet.

Which of the Following Correctly Describes Interest Payable